China Trade Complex In Bangkok Feared To Hurt Thai Businesses

[webfact]

China Trade Complex Feared to Hurt Thai Businesses

The Federation of Thai Industries and the National Human Rights Commission believe small and medium enterprises will be adversely affected by the development of the China City Complex project in Bangkok.

The Federation of Thai Industries, the National Human Rights Commission, and the National Economic and Social Advisory Council held a seminar on the impact of the opening of the China City Complex on Thai SMEs.

The project is currently under construction on Bang Na-Trad Road in Bangkok.

Vice chairman of the Federation of Thai Industries, or FTI, Tharit Sorat said the development of China City Complex project should be supported if Thai operators are allowed to sell or distribute Thai products there.

He is against the idea that the complex will be used solely as an export hub for China.

Tharit further said that the opening of the complex could badly affect Thai manufacturers of furniture, leather, fashion goods, gifts, souvenirs, household products and shoes as well as Thai logistics operators and those who import goods from China.

The FTI vice chairman questioned the government's strong support for the project when it could hurt Thai trade.

He called on the government to help Thai businesses deal with any repercussion if a large influx of foreign capital pushes the Thai baht higher.

President of Thailand Trade Representatives, Kiat Sitthiamorn, however, asked Thai businesses not to worry about foreign investments coming in from China, assuring that the government has clear-cut rules to protect Thai businesses.

Meanwhile, chairperson of the National Human Rights Commission, Ummara Pongsapit, said China City Complex will enable more low-cost Chinese products to enter the Thai market.

This means a number of Thai companies could be forced out of business, leading to massive unemployment.

She suggested a public hearing be conducted before the project goes ahead.

In response to global concerns over food safety and contamination, the FTI vice chairman called on the Food and Drug Administration, the Thai Industrial Standards Institute, the Immigration Bureau and the Customs Department to strictly inspect imported products to ensure their safety standards.

-- Tan Network 2011-03-28

[Bagwan]

Welcome to the real world Thailand. You'll just have to learn to compete internationally. That means creating an effective education system so that people have appropriate marketable skills. And the chances of that happening are? I have told my Thai family that the greatest gift that I can give them is to educate the kids. I am not at all sure that they, like successive Thai Governments, have taken that onboard.

[hammered]

So are all the dudes that will work at this place right down to the toilet cleaner going to be work permitted Chinese and of course there will be no buying of cheap Chinese goods by Thai entrepreneurs to resell elsewhere. Sounds like the usual scare of protectionism emanating from non-competitive middle men who dont want to see their monopolistic deals and expensive prices fade away.

Sounds like Lotus wipes out the sale of out of date overpriced milk sold by illegal Burmese slave labour in shop houses arguements. Never looks at legal employment with days off for lesser educated Thai people and lower prices for the poor. Still this isnt about what is good for the poor.

[laurentbkk]

Oh well ...by letting the horse of Troy into the country you have to face consequences. Cheap Chinese product will be EVERYWHERE not to mention that as many countries specially in Europe impose severe import duties for Chinese product , Thailand will become the new transit door of Chinese product as when it comes from Thailand duties are limited ... China made a another goods move in this trick . Too bad .... for Thai products. I cannot understand why the government allow this . Its kicking his own butt .

[wintermute]

Thailand is pretty open about its anti-competitive protectionist policies. They break ASEAN and other trade agreements all the time so I wonder why they are still allowed to trade openly with other countries. It's probably because of the "other" industry.

[REM]

Welcome to the real world Thailand. You'll just have to learn to compete internationally. That means creating an effective education system so that people have appropriate marketable skills. And the chances of that happening are? I have told my Thai family that the greatest gift that I can give them is to educate the kids. I am not at all sure that they, like successive Thai Governments, have taken that onboard.

I couldn't agree more. If Thailand ever wants to be a member of the global economy as more than a tourist spot, they have to accept that they need to do more than just rely on tourism and protectionist ideals. This project will expose Thai businesses to the international environment, and what the rest of the world is doing. Instead of just bringing in other people's money, now they actually will have foreign producers instead of Thai owned factories that export and a real opportunity if they handle it correctly. I see no problem with this. They don't have to take the cheap Chinese products if they don't want them, but since they already come in through other various channels, that argument seems absurd. Plus, are Thai products expensive and great quality? Nope, those are the products that are imported!!!

I have said the same to my Thai family as well, and I'm luckily my gf understands as she has seen the benefits of education, but the rest of her family could care less. When you're never shown that education really does open doors, it's not valued. I guess some of the locals could put aside the fear mongering and corruption and move into the 21st century and show the Thai population that can't afford an international education that it's still worth while to better yourself. But then they would lose what small power they have, and we can't have that can we??

Makes one understand why one high ranking deputy "doesn't respect foreigners".

[rangers]

Welcome to the real world Thailand. You'll just have to learn to compete internationally. That means creating an effective education system so that people have appropriate marketable skills. And the chances of that happening are? I have told my Thai family that the greatest gift that I can give them is to educate the kids. I am not at all sure that they, like successive Thai Governments, have taken that onboard.

I couldn't agree more. If Thailand ever wants to be a member of the global economy as more than a tourist spot, they have to accept that they need to do more than just rely on tourism and protectionist ideals. This project will expose Thai businesses to the international environment, and what the rest of the world is doing. Instead of just bringing in other people's money, now they actually will have foreign producers instead of Thai owned factories that export and a real opportunity if they handle it correctly. I see no problem with this. They don't have to take the cheap Chinese products if they don't want them, but since they already come in through other various channels, that argument seems absurd. Plus, are Thai products expensive and great quality? Nope, those are the products that are imported!!!

I have said the same to my Thai family as well, and I'm luckily my gf understands as she has seen the benefits of education, but the rest of her family could care less. When you're never shown that education really does open doors, it's not valued. I guess some of the locals could put aside the fear mongering and corruption and move into the 21st century and show the Thai population that can't afford an international education that it's still worth while to better yourself. But then they would lose what small power they have, and we can't have that can we??

Makes one understand why one high ranking deputy "doesn't respect foreigners".

The Thai's will not re-export the Chinese goods the Chinese will be doing it from here! It will all come in on the new Chinese funded railway coming from China via Laos.

"Say Mr Thailand how would you like us to build a new railway from China to Thailand and we will pay for it" yes please. No such thing as a free lunch -- Brilliant just brilliant.

[asiawatcher]

Just put the Baguas up and prevent the bad chi. God what a croc of crap. Afraid of competition? Watch as rules are changed to suit. But China is just as bad - no foreign interference in China Trade - what goes around comes around but most people know Chinese built anything is usually fraught no QC and poor in reliability. The article says 'cheap' imports. Well Thailand has a fair amount of 'cheap' and I would guess quality of these would rival the poor quality of the Chinese so let the better 'man' win. If not read up on your Feng Shui manuals Thailand or ask Thaksin for his advisors (or for that matter the Parliament)!

[David Barker]

Oh well ...by letting the horse of Troy into the country you have to face consequences. Cheap Chinese product will be EVERYWHERE not to mention that as many countries specially in Europe impose severe import duties for Chinese product , Thailand will become the new transit door of Chinese product as when it comes from Thailand duties are limited ... China made a another goods move in this trick . Too bad .... for Thai products. I cannot understand why the government allow this . Its kicking his own butt .

Spain should also be kicking its own butt. China has agreed to buy masses of Spanish debt try try to stave off a bailout in return for lots of concessions but all it means here in Barcelona is that the Chinese started by opening bazars on every street corner putting lots of old Spanish shops out of business, then when the council said (No More)they started taking over all the bars. A large industrial area that was all manufacturing 3 years ago in Badalona is now 90% Chinese wholesalers. All I can say is BE Warned.

[nomad127]

This is bad news for the Thai's, as they will become another Asian puppet of China. The USA might invade countries with their military, but China does it with their money. BEWARE!

[Puccini]

Vice chairman of the Federation of Thai Industries, or FTI, Tharit Sorat...said that the opening of the complex could badly affect Thai manufacturers of furniture, leather, fashion goods, gifts, souvenirs, household products and shoes as well as Thai logistics operators and those who import goods from China.

1. Was Thai industry not complaining that the strong Baht made it more difficult to export Thai products?
   
2. Did Thailand's Central Bank not make efforts to weaken the Baht?
   
3. Is the strong Baht not due partly to Thailand's big balance of payments surplus?
   
4. Would increased imports, including from from China, not result in a reduction of the balance of payment surplus and thereby help to weaken the Baht, and thus help Thai exporters?
   

[Puccini]

... the China City Complex...is currently under construction on Bang Na-Trad Road in Bangkok...

...chairperson of the National Human Rights Commission, Ummara Pongsapit,...suggested a public hearing be conducted before the project goes ahead...

With the Complex currently under construction, has the project not already gone ahead, presumably with all the necessary permits? Would a government order prohibiting the Complex to operate not have a negative impact on future foreign investment in Thailand?

[bangon04]

Just put the Baguas up and prevent the bad chi. God what a croc of crap. Afraid of competition? Watch as rules are changed to suit. But China is just as bad - no foreign interference in China Trade - what goes around comes around but most people know Chinese built anything is usually fraught no QC and poor in reliability. The article says 'cheap' imports. Well Thailand has a fair amount of 'cheap' and I would guess quality of these would rival the poor quality of the Chinese so let the better 'man' win. If not read up on your Feng Shui manuals Thailand or ask Thaksin for his advisors (or for that matter the Parliament)!

Not really sure what the fuss is about. Doesn;t China own most of Thailand already "by marriage" ?

[fallup88]

"President of Thailand Trade Representatives, Kiat Sitthiamorn, however, asked Thai businesses not to worry about foreign investments coming in from China, assuring that the government has clear-cut rules to protect Thai businesses."

I attended this seminar as I am a business owner myself and I was invited.

The supporters of this meeting kept on saying - Chinese goods are crap so Thais should not worry, Thai products are far superior in quality so people shouldn't be afraid. The group of supporters repeated that statement more than 5 times. That was their defense in building the China Trade Complex. They talked a lot of irrelevant things, such as trade ties with other countries, how Thailand is always important and seems to be the most trustworthy.

There were several organizations there to ask questions, but the supporters of China Trade Complex refuse / or were not allow to answer, they were only allow to listen and write the questions down. This brings to the point that, why even have this meeting when they can't answer any questions in defense?

Some questions/issues brought up include:

Are Thais allow to sell at the complex?

Why allow inferior quality of goods in the country?

What if China dumps goods like furniture in the market to destroy the local pricing and wipe out local manufacturers? What if the Chinese decide to export the furniture from Thailand and start dumping them at other countries in order to wipe out the local competition. People are afraid scenarios like this would lead to an anti-dumping tax on Thailand put on by foreign countries, this would wipe out an entire manufacturing sector.

Are there any rules and regulations regarding to the inflow of Chinese goods? Case in point - poor quality toys that contain large amount of dangerous chemicals, such as lead in paint. and hazardous materials.

Does the Thai government want to wipe out the trading businesses in Thailand?

The President of Thailand Trade Representatives, Kiat Sitthiamorn insist on that there will be rules and laws to protect the Thai businesses. Many people raise the question that when are these going to be in place? The complex is already being plan and building at the moment, laws take years to pass. During the seminar, they were not able to explain how these rules will protect Thai businesses. The China Trade Complex will surely operate even before these laws are in place.

Another main issues is that, since the China Trade Complex is a partnership between a foreign entity and Thai investors, what is the ownership percentage in this project at the present time (Thai law requires at least 51% Thai ownership). There are many examples where at first it is a 49 - 51% ownership, but many foreigners obtain Thai citizenship - they change their ownership shares from a foreigner to Thai, therefore having a larger influence in the company. Many Thai shareholders get pushed out this way.

Some people said their target market is the low income people who buy the cheap goods which are similarly priced as the Chinese goods, how is the government going to protect these local manufacturers?

Are all the required permits in place?

In conclusion, the seminar as an epic fail for the supporters of the China Trade Complex, they did not convince anyone why this project should be built. Instead they left everyone with more questions and worries.

Edited March 28, 2011 by fallup88

[KeyserSoze01]

Welcome to the real world Thailand. You'll just have to learn to compete internationally.

Fat chance of that, unless Somchai can figure out a way to scam, steal or otherwise cheat the Chinese. Good luck with that as the Chinese invented back-handed business deals. The Thais are out of their league.

[aussiebebe]

Thais have a right to be skeptical, after the China-ASEAN Free Trade started last year, basically the Thai garlic and onion famers were undercut by Chinese imports after the Chinese agreed upon a tariff-free early-harvest deal and then didn't drop tariffs on Thai imports. The implication of this for the China City complex, not elaborated upon in the TAN article, is that China doesn't in fact operate an open trade policy; it's exports are open or free, but imports are protected.

[Macmundi]

If you can't beat them, Join them!! In this case, Doesn't mean Thai people has to join the chinese and become communists. Just observe the way they live, learn from how they live their lives, how much their income is and how they cope with it. The chinese have been known to live shitty lives, but it has been changing alot recently. So don't be expecting their products to be cheap for too long. Competitiveness is the key. How do they make their products so cheap? Abuse of human rights? Lower production taxes? less corruption for manufacturing processes?cheaper raw materials? adopt their way of production and delivery. Thailand has culture, promote that . Chinese are smart, you want the western designs, we will give you the western designs. Thais don't think to promote thai culture. We only think the western designs are the modern way. But no, these days everything is controlled. Soon the homes we live in will be identical too. Where's the culture in that? Wake-up Thailand!! enough greed and fighting, start studying!

[Puccini]

Doesn;t China own most of Thailand already "by marriage" ?

No.

[khaowong1]

Oh well ...by letting the horse of Troy into the country you have to face consequences. Cheap Chinese product will be EVERYWHERE not to mention that as many countries specially in Europe impose severe import duties for Chinese product , Thailand will become the new transit door of Chinese product as when it comes from Thailand duties are limited ... China made a another goods move in this trick . Too bad .... for Thai products. I cannot understand why the government allow this . Its kicking his own butt .

Yes, Thailand can become the "Chinese products transit Hub"

I really can't understand what they are complaining about. 95% of everything you buy in Thailand comes from China anyway. Except somtam and nampla.

[dunkin2012]

Oh well ...by letting the horse of Troy into the country you have to face consequences. Cheap Chinese product will be EVERYWHERE not to mention that as many countries specially in Europe impose severe import duties for Chinese product , Thailand will become the new transit door of Chinese product as when it comes from Thailand duties are limited ... China made a another goods move in this trick . Too bad .... for Thai products. I cannot understand why the government allow this . Its kicking his own butt .

Yes, Thailand can become the "Chinese products transit Hub"

I really can't understand what they are complaining about. 95% of everything you buy in Thailand comes from China anyway. Except somtam and nampla.

Absolutely wrong assumption.....

Are you sure?......... How did you get 95%? LOS is not like Loas, Cambodia and Myanmar which can't produce many things..... Thai products dominated Laos' market and about 40-50 in Cambodia's supermarkets has Tai stuff....

[dunkin2012]

.

Edited March 29, 2011 by dunkin2012

[Tanaka]

Welcome to the real world Thailand. You'll just have to learn to compete internationally. That means creating an effective education system so that people have appropriate marketable skills. And the chances of that happening are? I have told my Thai family that the greatest gift that I can give them is to educate the kids. I am not at all sure that they, like successive Thai Governments, have taken that onboard.

And why should they? In school they learned, apart from singing, that Thais are superior to others and Thailand is the best country in the world. So why bother, they know everything already.

[swillowbee]

Oh well ...by letting the horse of Troy into the country you have to face consequences. Cheap Chinese product will be EVERYWHERE not to mention that as many countries specially in Europe impose severe import duties for Chinese product , Thailand will become the new transit door of Chinese product as when it comes from Thailand duties are limited ... China made a another goods move in this trick . Too bad .... for Thai products. I cannot understand why the government allow this . Its kicking his own butt .

... "I cannot understand why the government allow this ."

... perhaps,'A', the smarter Chinese (average national average IQ = 100) hoodwinked the Thais (national average IQ = 91) ... or ... 'B', the greedy and corrupt Thai officials sold an express ticket to the Godless Chinese to economically colonize Thailand.

... regardless the cause, the consequences do not bode well for Thailand ... the Thai crooks who signed this deal must have been paid just an incredible amount of money by the Chinese crooks ... shame on this country.